Textile And Garment Export Growth Drives Yarn Market Economy To Pick Up

In the first quarter of 2010, China's textile and clothing grew by 15.20% year-on-year.

Although the growth rate of export data in the month of March showed a significant decline compared with the cumulative growth rate in the previous February, we believe that the driving force of textile and garment export growth has not changed, and that textile and garment exports will continue to grow in the future.

The boom in textile industry is picking up yarn demand, and the yarn market is coming up in the near future. It is expected to continue in the next few years.

At the same time, textile export growth has lasted for 6 months faster than the growth rate of clothing, and the global textile industry continues to recover.

We suggest that we should pay close attention to the export enterprises with bargaining power, as well as the leading enterprises in printing and dyeing and accessories industries.

Main points of investment:

In the first quarter, the export volume of spun clothing continued to grow and exceeded the same level in the same period of 08 years, and the future textile and clothing exports will continue to grow.

In the first quarter of 2010, China's textile and apparel exports totaled US $39 billion 246 million, an increase of 15.20% over the same period last year.

Among them, the total export volume of textiles was 15 billion 207 million US dollars, the total export volume of clothing was 24 billion 39 million US dollars, the growth rate was 26.54% and 9.03% respectively, and the export amount continued to show an increasing trend, and it exceeded the 08 level in the same period.

Although the growth rate of export data in March was significantly lower than that of the previous February, the cumulative export growth rate of textiles and clothing in February was 39.43% and 23.71% respectively, which is related to the randomness of the number of customs declarations.

We believe that the driving force of textile and clothing export growth (the demand for European and American products is rising gradually and the prices of export products) have not changed, and the future textile and clothing exports will continue to grow.

The export volume of domestic textile and garment will continue to grow in the case of no drop or increase in export volume, and will probably exceed the market expectation of 10% growth in the whole year.

In the case of improved employment in Europe and the United States, consumer demand will gradually pick up, especially after more than a year of clothing consumption atrophy, clothing demand will show a greater degree of rigid demand pull.

Therefore, the volume of orders for domestic textile and garment export enterprises will not decrease in the same period.

In addition, the higher cost of raw materials will push manufacturers to further raise prices and pfer raw material cost pressures.

In the future, the order price of domestic textile and garment exports will be further improved.

In the case of a steady increase in prices, the domestic textile and clothing export volume will continue to grow. It is not ruled out that if the economic recovery in Europe and the United States exceeds expectations, the growth of textile and clothing exports throughout the year is likely to exceed the market expectation of 10% growth in the whole year.

Textile exports continued to grow faster than clothing, and the global textile industry continued to recover.

At present, the growth rate of textile exports has lasted for 6 months, faster than the growth rate of clothing. In 2010, textile exports amounted to US $15 billion 207 million, more than the same level in 08 years (08 US dollars in the same period was US $14 billion 614 million).

With the international demand (especially in Europe and America) beginning to improve, the global textile enterprises' operating rate continued to rise further, and the global textile industry continued to recover.

The textile industry boom is picking up yarn demand, and the yarn market is coming up in the near future. The yarn market is expected to continue in the coming years.

Due to the boom in textile production and the demand for upstream yarn from downstream demand, yarn market performance has been better in recent years, and weekly yarn prices have risen by around 1000 yuan.

The main reasons are: the textile industry has gradually recovered and the demand for upstream products has increased; the shortage of migrant workers has caused the low operating rate of small and medium-sized textile enterprises in China, and the disorderly competition between the middle and low grade products has been alleviated.

Although the pportation difficulties of Xinjiang cotton are temporary, but the "shortage of migrant workers" and the revival of the industry demand for yarn will be medium to long term. Therefore, we believe that the yarn market will continue in the next 2 to 3 years.